Portugal has published Ordinance No. 352/2024/1 23 December 2024, which regulates the tax incentive for scientific research and innovation (IFICI) included in the 2024 Budget Law. The Ordinance entered into force on 24 December 2024.
The incentive provides a 20% tax rate on net income for 10 years and an exemption on foreign-sourced income for individuals who become tax residents in Portugal and were not residents in the past five years.
To qualify, individuals must work in specified activities, including higher education, scientific research, and roles within companies benefiting from investment-related benefits. The incentive also applies to highly qualified professionals in sectors such as manufacturing, information technology, and healthcare.
The ordinance applies to individuals who became residents of Portugal on or after 1 January 2024.
Portugal gazetted the Budget Law for 2025 on 31 December 2024.
